A payday loan is a small loan that is paid back quickly. Usually, the loan is for a few hundred dollars, and it lasts for one to four weeks, until the borrower's next paycheck. It's an unsecured loan, which means you don't have to put anything up as security.
Payday loans are also sometimes called "check advance loans," "cash advance loans," "post-dated check loans," or "deferred deposit loans."
The idea is that the lender will give you money now in exchange for your next paycheck. When you get paid and the money goes into your checking account, the lender takes the amount of the loan plus the fee out of your account.
There are payday loan places in many cities, and you can find a lot of them on the Internet. If you get approved, the money is sent to your checking account overnight. Most loans are for one to four weeks, or until your next paycheck comes in.
When the loan is due, the company takes the amount you owe, plus a fee, from your bank account. You can "roll over" the loan until your next payday, but there will be another fee.
Why don't most people get online payday loans? There are two:
- Not knowing which company to work with or how to go about the process.
- Not being able to do what is asked.
Each company has slightly different requirements you must meet. Here are a few of the most important ones:
- You are an American.
- You've had a job for at least three months or you get money every month from a government programme (such as Social Security)
- If you're working, you make at least $1,200 per month, or $960 per month if you're on a fixed income.
- You have direct deposit
- You have a checking account that is still open.
- You can be reached through your home phone.
If you meet all of those, you probably won't have to wait long to get a loan.
There are a lot of differences between the payday loan companies. For instance, not all companies lend money to people in all 50 states. Some have higher or lower requirements for income.
There are three things you can do to improve your chances of being accepted:
- Don't send your resume to more than one business. If a lender sees that you've applied to more than one company, they'll think you're too risky and won't give you a loan. That's a common mistake you should try not to make.
- Gather all of your information and fill out the form correctly and completely.
- When you fill out the application, be honest. They will look into what you say to make sure it is true.
Now you know more than 95% of the people who want to borrow money. You now have the information you need to find a lender you can trust and get a payday loan today. That puts you way ahead of everyone else who tries to get a loan online.
I hope you find a way to meet your cash flow needs!
